Board ponders bond issuance

Saturday

Aug 24, 2013 at 1:22 PM

Kent Casson

The Prairie Central Board of Education has considered converting bonds to operating funds for quite some time and continued the discussion at its recent meeting.Kevin Heid, the senior vice president of public finance for Stifel, explained bond issuance and different options available to the district. The board is considering the possibility of issuing working cash bonds and keeping part of that rate to capture some funding to survive the new few years.“Pennies could rain down from Springfield by 2018 and we may not need it. I’m not holding my breath on that one,” said Heid.The board is expected to go through the notice process during the next year and possibly issue working cash bonds in the amount of $4.6 or $4.7 million, which would translate into a rate of about 75 cents. This means if the tax-paying public is now paying $1.17, they would then be paying 75 cents, resulting in a slight refund.Prairie Central Superintendent Dr. John Capasso says this might be the new revenue stream the district is looking for at a time when downsizing is being considered while trying to operate as efficiently as possible.“The school district is faced with all kinds of funding problems. The state has taken away more than $1.6 million in funding over the last three years. We expect that will probably continue,” he said.“Everybody out there knows we’re struggling and we’re not just throwing money away — we’re doing the best we can,” said board member Mark Slagel.Several years ago, the board issued bonds to build a new junior high and an addition to the high school and has been paying off the bonds for the better part of two decades. Those bonds are about to be paid off, according to Capasso.Heid is expected to attend another meeting in the coming months to discuss the issue further.In another matter, the board learned that the district received everything in categorical payments for Fiscal Year 13 except for some driver’s education money. The bad news, according to Capasso, is the fact that the district lost $1.6 million in three fiscal years.“That, to me, is the most disturbing of anything coming out of Springfield,” he said.Following an executive session, the board accepted the resignation of Joni Studebaker, with the intent to retire as a fifth grade teacher effective at the close of the 2017-18 school term and approved a medical leave for a high school teacher. They also appointed Bonnie Sechrest and Les Stevens as bus monitors; Jared Mundt as sophomore baseball coach; Kaylan Somers as sophomore girls basketball coach; Sonia Gradberg as freshman girls basketball coach and Scott McGuire and Mike Wolf as junior high track coaches.

Also at the Aug. 15 meeting, the Prairie Central Board of Education:

-Approved a two year IHSA swimming cooperative agreement with Pontiac Township High School.-Authorized an application for the Recognition of Schools.-Viewed a draft of the school district brochure.-Expressed support for a four-year tax abatement on new construction and the creation of new jobs at a Fairbury business. A resolution will be approved at a future meeting.-Learned the new football scoreboard has been erected and was financed through private donations and volunteer labor.